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Greek PM Samaras: “Without Financial Aid, Greece Will Go Bust” After October

Greek Prime Minister Antonis Samaras revealed the dramatic situation of Greece’s finances : “Without the aid tranche of 31 billion euro, Greece will go bust.” Hours before meeting German Chancellor Angela Merkel in Berlin on Friday,  Samaras sent his message to the iron lady of Eurozone saying also that Greece’s “economy is really bleeding.” Speaking to German daily Sueddeutsche Zeitung, Samaras said that his government would achieve the promised cuts package of 11.5 billion euro over the next two years, so that the country receives the much needed aid tranche of 31 billion euro.

Greece can stay afloat if it receives its next tranche of aid later than October but will be broke if the money does not arrive, Prime Minister Antonis Samaras said.

“Theoretically, we could bridge the time. But if we don’t get the tranche at all, Greece is broke,” Samaras revealed.

The cuts-package is a prerequisite for Greece to receive the bailout tranche, of which 25 billion euro will go for the recapitalisation of Greek banks. The rest will go for the repayment of interest rates to Greece’s lenders.

 Samaras repeated that a Greek exit from the euro zone would be “catastrophic” and would lead to social unrest that would affect Europe more broadly.
He also signaled that his country needs more time to meet targets agreed with its bailout partners, telling Sueddeutsche that “some things might have to change” to support Greece’s reform efforts.

He said comments by other politicians on a Greek exit have disrupted efforts by his government to sell state holdings.

“Every time a German, Dutch or Austrian politician brings a euro exit into the debate, I think, ‘how should I privatize state operations? Which businesses will invest euros with us, when they might be paid back in drachma?’” (Bloomberg)

In line with the promises of his predecessor, George Papandreou, Samaras told SD that he “guarantees personally” that rescue funds for his country will be paid back to Germany and other creditor countries.

Papandreou failed to achieve the necessary reforms. Will Samaras manage push them through his coalition government partners?

Samaras is scheduled to meet Merkel in Berlin on Friday and French President Hollande in Paris on Saturday.

Full Article in German Sueddeutsche Zeitung: “Germans will get their money back



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  1. Lets see the mathematics of the debt in Greece.

    Lets say it is: 400 Billion.

    400,000,000,000 x 7% interest per annum.

    That is 28 Billion per annum only in interest for one year.

    That is 2.4 Billion per month in interest only.

    But if Greece paid off 36.7 Billion per month to its lenders, Greece would be debt free in one year.

    How will Greece collect this money?

    Greece can collect about 5 to 8 Billion only from VAT per month.

    So that means we have a big problem.

    Another source of income comes from the public service, and the police doing their job correctly by issuing parking fines and other traffic fines for speeding.

    This is just scratching the surface, but i guess more revenue can be collected from selling its produce and exporting its goods. And from the tourism every summer. So if Greece is careful with its spending and in doing smart business it could probably put it self in a better position within 3 to 5 years.

    But i guess there are outside elements and foreigners who will hinder this progress because it suits them.

    • keeptalkinggreece

      do not forget the internal elements like the thousands of restaurant/bar/cafe/taverna/rent-rooms owners who do not issue receipts across the Cyclades,the Dodecanese, Ionian and so on.

      • The solution to this problem is in fact very simple. Do away with physical money completely by developing an electronic currency at an exchange rate of 1:1, and give everybody a week to exchange their Euros for electronic spandouliks. After that, Euros cannot be used anymore in Greece.
        Simyltaneously issue every business in the country with a payment terminal, issue every person in the country with a card linked to their Spandouliks account, and everything goes automatically, including collection of taxes…. No more queuing in banks, no more bank strikes, robberies, etc. No more queuing for anything. Swipe the card and away you go. A bit like the “Oyster card” on London transport. Go anywhere with a card!
        If you need/want to go abroad, you can exchange spandouliks for physical money at the border and off you go. Coming into the country? Hand over the dosh, and get the card, loaded with whatever you hand over converted to spandouliks. Even as a tourist. Temporary spandouliks account. Simples 🙂

        • keeptalkinggreece

          excellent idea. I wonder why they dont do it globally.

          • The rich would not be able to dodge taxes anymore either… Can’t go around making them equal to us lot!

          • Well Germany has something like this, it is the EC card.

            Everyone who is registered as employed is paid directly into their EC card and from there the person pays his bills, goes shopping, takes out cash from the ATM etc.

            In Germany, very few businesses operate with VISA, Mastercard, Diners, and American Express. Why? Because these cards make money for the United States and Britain who brought these cards into the world.

            So the Germans created their own EC card (Electronic Cash card) to keep as least monies leaving the country as possible. The whole Germany economy is based on an incoming economy. They have one industry supporting another.

            For example, the bicycle, their are tyre manufacturers, wheel manufacturers, spare parts manufacturers, retail shops, repair shops, tool manufactureres, clothing for cyclists, helmets for cyclists, lights, reflectors, carrying baskets, bicycle locks and so on and so on. Think how many businesses go into this product? And one supports the other. How many millions or billions of Euro is just this industry worth.

            Greece for instance is one of the biggest Gastronomy industries in the world. Think of the many business that are involved in this industry. Cutlery manufacturers, Plate and Glass manufacturers, manufacturers of Serviettes, Cutting Boards, Knives, Tables, Chairs, Lamps, Plumbing, Electronics just to name a few of the non ingestible products. Then you have Vegetable and Fruit growers, sellers, suppliers, deliverers, Meat and Fish, Herbs and Spices.

            And just think of the sales of these products and the VAT they will generate.

            I mean something is really wrong in Greece if they are not collecting the VAT correctly.

            I agree partly with Ephilant in regards that all businesses should have an Electronic Terminal connected to the Tax Department.

            I did in the past mention something like this but was critised because my suggestions were a bit too extreme, and too big brother syndrome. But having a Electronic Terminal connected to the Tax department directly is a good idea. Then the taxes could be collected and if the owners cannot pay well they can sell it to someone else and give somebody else a chance at the business.